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Wednesday, August 10, 2016

How Economics Will Reform Some American Institutions

Economics filters throughout our lives and impacts just about every aspect of national identity. Both institutions and people function in an environment where economics impacts the choices we make and the institutions we live in. As the global economy changes we will find pressure being placed on our institutions in a way that will likely transform them.

All systems need resources to survive. As the financial resources change institutions will also change to meet new market realities. The availability of resources will make a difference in they way in which these organizations function and adapt. That adaptability will keep them thriving as positive contributors to society.

As a nation must pick up its capacity to compete in a more complex world it will also need to adjust its internal operations. Those operations come in the form of our institutions that seek to process information, resources, and people to beneficial outcomes. Reform will be through them and how they impact the environment.

Consider how national competitiveness draws in new resources through the exportation of products and services that are sold on the market and draw back income used to finance our institutions. When an economy is competing well it will create paying jobs and increase tax revenues leaving more resources for everyone.

The problem is that when the competitiveness of the nation changes so does its ability to muster resources to support its institutions. Chronic budget crisis will ensue. There will be change because the economics will force change as the nation ponders the ramifications of the risk of being the worlds second largest economy.

Leadership will need to think more on the lines of how to draw in international investment, reduce expenses that do not serve an institutions purpose, and to create more opportunities for people to succeed. Institutions will be seen as a support to that change and adjustment and will often be the first targets of reform.

National competitiveness and institutional reform should be a major concern in our economy. Whether we are discussing law enforcement or healthcare we will need to ensure that institutions help us become more competitive. Their purpose, process, and accountability are part of any reform process to ensure the greater system, based on our principles, flourishes.